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Grow Minnesota! continues to provide one-on-one assistance to businesses across the state. The majority of our assistance is provided by our 44 local chamber or economic development partners and is a direct result of retention visits. Assistance ranged from matching up businesses with local suppliers to identifying expansion sites. Fifteen percent of businesses visited requested and received some sort of direct assistance. Examples can be found throughout this report. In addition, Grow Minnesota! added two business assistance resources that will continue into 2009-2010. The first, BusinessConnection, is Minnesota's first and only statewide one-stop shop for business assistance. The second, Get Ready to Grow, is a grant and loan program for small businesses made possible by the Pohlad Family Foundation.
BusinessConnection
What it is: Both the Minnesota Chamber and the Department of Employment and Economic Development (DEED) have initiated business retention programs since 2003. More so than ever, the business community and state are reaching out to employers, thanking them for contributing to our economy and offering to help solve problems that affect their ability to stay and grow in Minnesota.
Minnesota has more than 100,000 businesses. Recognizing that Grow Minnesota! and DEED can only conduct about 1,500 one-on-one visits per year, it is conservative to conclude that thousands of companies may need assistance but are not likely to get it. First, they may not be an active member of the business community. Second, no one has made a direct and personal offer to help. Third, they may be too busy to ask. A statewide business assistance and referral network that is well publicized, up-to-date and easy to access will reach out to these businesses.
How it works: Grow Minnesota! has created, updates and maintains an online database and referral network which includes businesses' most requested assistance resources, both public and private sector. In terms of inquiries, many we receive are answered directly. Others require referrals to organizations, including Grow Minnesota! local partners, which resolve the issues. The network allows businesses to access information. Some of it was previously unavailable, but all of it is now readily searchable and available via a single entry. This online resource also increases and supports the ability of local economic development leaders — both private and public sector — to respond to local businesses as well as inquiries from businesses considering a Minnesota location.
For the last year and a half, the network and promotional materials have been tested in 13 communities: Alexandria, Bemidji, Brainerd, Chanhassen, Chaska, Glencoe, Grand Rapids, Hutchinson, Litchfield, Luverne, Park Rapids, Richfield, Victoria, Waconia and Willmar. In January 2010, BusinessConnection's toll-free number, (888) MINN-BIZ, and online database, www.mnbizconnect.com, will be promoted statewide.
Get Ready to Grow grants and loans
In 2009, the Pohlad Family Foundation pledged $5.25 million to help small businesses in Minnesota survive the current economic crisis and be poised for recovery. Eligible small businesses had to be privately held, have fewer than 50 employees and generate annual sales of $10 million or less. The Foundation turned to Grow Minnesota! to organize and administer this program due to its statewide network of local partners; the network's knowledge of local businesses; and a six-year track record of business assistance.
Through the grants and loans, small businesses had access to up to $200,000 in grants to retain key employees while planning for and adjusting to their futures. Businesses also could apply for short-term, low-interest working capital and capital improvement loans, up to $75,000, to help continue operations and finance improvements consistent with a company's growth plans. Businesses applied via their local Grow Minnesota! program. Each partner community initially recommended up to four applications for funding. A committee of small-business owners assisted the Minnesota Chamber's Grow Minnesota! staff in making the final awards.
In total, with the addition of $250,000 in loan money for greater Minnesota supplied by the Minnesota Department of Employment and Economic Development (DEED), the Get Ready to Grow program either granted or loaned a total of $5.5 million to 90 businesses in 62 communities. These businesses not only employ over 1,250 Minnesotans, but also support hundreds of other local businesses. Get Ready to Grow's impact will go well beyond the direct recipient of grants and loans.
During the next three years, we expect the loans to generate almost $100,000 in interest that will become the foundation for the Get Ready to Grow revolving loan fund. The fund will help complete Grow Minnesota!'s menu for business assistance. Our goal is to grow it over time. We thank the Pohlad Family Foundation for giving us a very good start.
"At a visit in 2008, we raised the issue of increasing waste water treatment expenses. Grow Minnesota! research found that we could recoup some of our expense and provide an economic development tool to the city of St. Paul by retiring sewer availability credits for capacity that, because of permanent process changes, our plant no longer needs. We've been working throughout 2009 to make this happen. If it does, Rock Tenn and its St. Paul employees along with our city and region will be winners." David Briere, |